Posted by David Krulac on December 27, 2004 at 22:37:45:
I’ve been going to foreclosure sales for decades. The percentages work out something like this. Of the original foreclsoure list 3 months before the sale rough 1/3 are worked out and the sale cancelled, about 1/3 are posponed and about 1/3 are sold at the foreclosure sale. Of the last group about 90-95% are bought back by the bank because there is little, none, or negative equity. The typical foreclosed home was sold 3 years ago or less, the owner hevaily financed, often got a second mortgage taking all their equity, and have other liens like water, sewer, trash and taxes owed. They are upside down and for them the simplest solution is to walk away. OTOH an owner with 50% equity is not likely to let the house go to foreclosure. They will refi, second mortgage, list the house for sale or borrow from a relative to stay afloat.
You need to do your homework and find that needle in the haystack all the while dodging the 100 “investors” looking for the same deal.